For the second time in as many years, a local medical practice operated by a well-known cardiologist has filed for federal bankruptcy protection.
Millennia Cardiovascular, P.A., located at 101 East Market Street, Suite 1H in Smithfield has again filed for Chapter 11 bankruptcy protection in the Eastern District of North Carolina US Bankruptcy Court, according to the September 29, 2017 filing. Dr. Franklin Wefald is the President and owner of the business.
In the federal court filing, Millennia Cardiovascular listed approximately $57,400 in assets and $664,743.91 in liabilities. The business listed $400 in cash on hand on the filing date and $40,000 in outstanding accounts not paid to the firm.
Among those with claims against the medical practice are: Last Chance Funding, Inc. of West Hampstead, NY; Arch Capital of New York, NY; Capital Bank of Greenville, TN; Cook Medical of Chicago, IL; and DAKA Capital Group of Cedarhurst, NY. The largest claim was to Dal-Bridge NC Partners L.P. of Charlotte, NC for $341,600.
The IRS also has a claim against the business for $60,000.
Assets of the business included 25 chairs, 3 couches, 10 desks, 4 exam tables, 2 stretchers, coffee maker, refrigerator, dishwasher, 15 computers, and 2 EKG machines, with a combined value of $17,000.
Millennia Cardiovascular reported $2,250,000 in gross revenue in 2015; $1,865,000 in 2016; and $1,225,000 during the first 9 months of 2017.
Raleigh attorney Jason Hendren who handled the 2016 bankruptcy is also handling the latest case. In an email to WTSB News on MondayHendren said, “The current filing is simply a restructuring of existing debt and is not related to the prior bankruptcy filing. The operations will continue in the ordinary course.”
Previous Bankruptcy Filings
Millennia Cardiovascular filed for bankruptcy protection in April 2016. When Dr. Wefald’s firm emerged from bankruptcy a month later in May 2016, he released a statement to WTSB News indicating a lawyer for a former business manager had attempted to shut down the practice by seizing computers and furniture but quickly accepted his settlement proposal in federal court.
“Rumors were quickly spread that I was going out of business but this was the furthest from the truth,” Wefald said in May 2016, “If Donald Trump can file chapter 11 to protect his businesses three times and still be President of the United States then everyone will understand that this was a simple legal maneuver to protect the practice from what we believe was an unjust seizure of property.”
In 2010, Wefald filed for bankruptcy after a former business partner filed a lawsuit against him. The former business partner, Dr. Eric Janis, was awarded a $650,000 judgment in federal court in 2011, after ruling Wefald deliberately and repeatedly libeled and defamed him. The same year a judge also tossed out a countersuit Wefald filed against Janis ruling it had no merit.
Wefald has been seeing patients in Johnston County for the last 18 years.
